North Carolina Down Payment Support Systems

Online Payments - The North Carolina Housing Finance Agency got two amazing programs for First Time Home Buyers. These systems would be the Mortgage Credit Certificate and the Down Payment Assistance Program.

If you qualify for one of the programs and you also purchase a house and December 1, 2009, you can ALSO be eligible for the $8,000 tax credit merely enacted into law in the Federal Economic Stimulus Plan.

First, who is a first-time Home Buyer? There is a first-time Home Buyer someone who hasn't owned a home in the prior three years. Here is the exact same qualifying definition for the $8,000 tax credit.

All home owners can claim an itemized deduction for mortgage interest. The MCC takes this a step further. An MCC “reduces your tax liability based on a share of the mortgage interest that you pay.

In case you qualify for the MCC, you are able to claim 20% of the interest you pay as a credit on your federal income taxes on your mortgage. You can save around .

You will be able to join this with the $8,000 tax credit, should you qualify for 2009. This might reduce a purchaser's tax liability .

Who Qualifies for an MCC?

Household income is defined as the “gross income of the mortgagor and every other person expected to reside in the home who's 18 years of age or older.”

House price limits that apply in Durham Orange and Chatham Counties and the income are given below.

MCC Income Limitations 1 Person $61,500 2 Persons $61,500 3 Persons $70,500 4 Men $70,500

MCC Sales Cost Limitations New House $220,000 Existing Residence $210,000

The purchaser only has to pay and the load would pay up to $8,000 of the remaining balance.

This program has more stringent income limitations than the MCC program outlined above. Like the MCC program, it might be used in conjunction with the new $8,000 tax credit on house purchases between December 1, 2009 and January 1, 2009. The deposit help, nonetheless, cannot be employed along with the MCC. It is an either or situation.

House price limitations that apply in Durham, Orange and Chatham Counties and the income are given below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Individuals $45,650 3 Individuals $51,350 4 Individuals $57,050

Down Payment Support Sales Price Limits New Dwelling $210,000 Existing Home $210,000